Overview

You will be made aware of the major accounting concepts and of how financial statements are used to support companies in their measurement of profit and valuation of assets and in their planning for future strategic moves and developments. This module focuses on the techniques of management accounting that are used to collect, process, and present financial and quantitative data within an organisation to aid performance management, cost control, planning and pricing and, through these, the process of managerial decision making.

Topics studied in this module will include:

• Concepts of management accounting
• Role within a company – financial planning, control, budgetary process
• Preparation of, adjustments to and uses of Financial Statements and their effect on measurement of profit and valuation of assets
• Evaluation of capital projects using various methods of investment appraisal
• Main elements of cost, calculation of overhead recovery rates and preparation of product costs using absorption techniques, marginal and activity-based costing
• Distinguishing between fixed and variable elements of costs and use of this knowledge to apply cost, volume and profit analysis
• Use of appropriate software packages to support management accounting processes

Assessment Strategy

Threshold (50%–59% / C- to C+) Has shown knowledge of the key areas and principles and the main elements of the subject area are understood. Fair integration of theory/ practice/ information in the assessed work. Adequate understanding and use of appropriate conceptual frameworks, experience and facts.

Good (60%-69% / B- to B+) Has shown a strong knowledge and understands most of the subject area. Good integration of theory/practice/information in the assessed work. High standard of critical analysis using appropriate critical frameworks, experience and facts.

Excellent (70%-100% / A- to A*) Has shown a comprehensive knowledge and detailed understanding of the subject area. Excellent integration of theory/practice/information in the assessed work. Excellent standard of critical analysis using appropriate conceptual frameworks, experience and facts. 

Learning Outcomes

• Critically argue the significance of financial statements and how these are used in managerial decision-making

• Critically compare overhead recovery rates and absorption techniques with marginal costing and activity-based costing

• Devise and sustain arguments in the major concepts of management accounting

• Evaluate various methods of investment appraisal that can be used in the evaluation of capital projects